China has time to make money before lift of sanctions imposed on Iran

Business Materials 10 May 2015 14:55 (UTC +04:00)

Tehran, Iran, May 10

By Mehdi Sepahvand - Trend:

While Iran and the group P5+1 (the US, UK, France, Russia, China, and Germany) are holding intensive talks on Tehran's nuclear program, which are expected to lead to the removal of international sanctions on Iran's economy, it is a point of interest how the Iranian market is going to change when that comes true.

The to-be agreement is seen as a chance for Western companies to see the way open to a lush market which has been in Chinese grasp under sanctions.

Western companies, mostly represented in the Iran Oil Show 2015 by middle-aged gentlemen most of whom have been doing business with Iran before the sanctions, unanimously boast of their quality work and products, proud and optimistic to win the Iranian market over once it is freed of the rein of sanctions.

But the usually young Chinese businessmen attending the show have also interesting things to say.

"Sanctions are not lifted gradually, that's one thing for sure," Jason Han of the Chinese Blooming Drilling Company told Trend during the oil show which was held in Tehran May 6-9.

"So, we will have time to make money," concluded Han whose company has signed contracts with Iran on three projects with a total trade volume of $120 million.

Han's company which participated in the show along with their partner HJ, producer of top drives used in drilling, has cooperated with the National Iranian Drilling Company, the National Iranian Oil Company, and Petropars on projects such as the Maroon field since 2010.

He says that even if sanctions are removed and Western companies get back to the Iranian market, Chinese companies still have a weapon for the fight that is the low prices they charge for goods and services.

"But we will lose the market for sure," he said.

The sanctions are expected to be removed following a comprehensive agreement between Iran and the six powers, which is scheduled to be reached by June 30.

Mehdi Sepahvand is a Tehran-based Trend Agency reporter. Follow him on Twitter @mehdisepahvand